The Official Fuel Prices Thread

This is a discussion on The Official Fuel Prices Thread within The Indian Car Scene, part of the BHP India category; Now, the government mulling about de-regularisation of fuel. More details at -
Auto fuel rates to be freed- Oil & ...

Now the crude price is down to $35/Barrel i.e. 160 liters, roughly 11rs/liter. I understand that not all crude is petrol. Even if its just 50%, petrol cost will not be more than 16-17/liter, where is rest of money is going, retail price is 3 times the actual cost.

@twinky, Rs 11 is the estimated rough price per littler of Petrol, now this price keeps on chaging as per the rate of the barrel. If its 38 $ today, tomm it will be 50$. Yes your point of petrol being retailed at Rs 50 in Mumbai, the totaly cost (including profits, transportation, conversion from crude petrol to proper pertrol) is Rs 26. The balance goes to the govertment. Acc. to latest talks petrol companies are making a profit of Rs 4 per litre of petrol sold.

Considering the fact that when these guys were making a loss of Rs 1 every litre sold, they increased the price to Rs 55 (in mumbai), even if we apply the same logic, the fuel prices should be very low. But i guess that will not happen.

Black Gold has lost its sheen, and how! Today, the cost of a litre of petrol or diesel for Indian oil majors is less than the price of the bottle of packaged water that you buy.

Back-of-the-envelope calculations show that a litre of petrol costs about Rs 11 and diesel about Rs 13, excluding transportation and sundry other charges etc. In contrast, you pay Rs 12-15 for a one-litre bottle of water.

Here's how the arithmetic goes: A barrel of crude oil contains about 190 litres. At $38 a barrel, the current price in the international market, each litre of crude works out to Rs 10, taking the exchange rate at Rs 50 to a dollar.

On an average, approximately 28-29 litres of petrol and 85 litres of diesel are refined from each barrel of crude.
Admittedly, this figure can vary according to the type of crude being processed and the technology deployed in a refinery. So how much would the price of a litre of motor fuel be after incurring the cost of refining, if there were no other charges?

The calculation is so mind-boggling that sometimes even executives of oil marketing companies get confused by the myriad central and state taxes - levied at incremental rates - and complex charges such as "freight equalisation levy'' and dealer margins, etc. Such levies taken together constitute 45-55% of the sale price of petrol or diesel.

So if petrol costs a little over Rs 45 a litre in Delhi pumps, taxes and levies make up about Rs 22 and another Rs 12 constitutes the oil-marketing firm's profit. That leaves a basic cost of about Rs 11 per litre. Similarly, at Rs 32 a litre - the Delhi price of diesel - the actual cost can be taken as Rs 13 as the companies are making a profit of almost Rs 3 a litre.

These calculations are admittedly simplistic and do not take into account other products such as kerosene, jet fuel, cooking gas, naphtha, etc., that are produced along with petrol and diesel and have a bearing on the final cost of each product. However, there won't be big difference between these figures and the figures worked out by the industry.

With crude projected to slide further in the coming days as the global slowdown gets a firmer grip on industry and pushes demand further down, the obvious question is: When will our pump prices go down further?

ToI has repeatedly said this will happen just before the elections are announced, possibly around February. In the meantime, the government is looking to rejig the petro-tax regime to make way for lower prices without hurting oil marketing companies that have accumulated huge losses during the extended run of high crude prices.

the thing i would like to ask the karnataka government is that what is the special service that they are providing to people in karnataka that the vehicle taxes are so high fuel is costliest in the country well personally i feel the roads are horrible you should see TN highways...
all this useless politicians are to blame..
i remeber CM yedurappa saying he will lower taxes when fuel prices increased so that it would come back to old rates.. did he do it?? NO all he did was attend peoples weddings take pictures get Doctorates from US everything exept smooth running of the state.I dont know why when i look at hiim he reminds me of a lizard !!

What is the probable date the fuel prices likely tob e revised (come down) ? It is currently at $37/bbl. Govt is mulling at Feb-09 as cutting of fuel prices as EC will announce the election dates. But do we have to pay such a high prices till that time? Yeah..i know that people may argue that when the crude was around $145/bbl, we have paid less for a ltr fof petrol / diesel.

the thing i would like to ask the karnataka government is that what is the special service that they are providing to people in karnataka that the vehicle taxes are so high fuel is costliest in the country well personally i feel the roads are horrible you should see TN highways...
all this useless politicians are to blame..
i remeber CM yedurappa saying he will lower taxes when fuel prices increased so that it would come back to old rates.. did he do it?? NO all he did was attend peoples weddings take pictures get Doctorates from US everything exept smooth running of the state.I dont know why when i look at hiim he reminds me of a lizard !!

I think it's our indifference and tolerance levels which is responsible for this state of affairs in Karnataka.

I have travelled extensively in border districts of Anantapur & Chittoor of AP, believe me roads are really good. These places are around 500km from Hyderabad. Can the same be said about places 50 km from Bangalore. There is a road from Hindupur to Madhugiri which I had to travel by car recently, once you enter Karnataka, road is in such pathetic condition all vehicles including trucks travel on fields next to road.

Karnataka is up there with UP & Bihar now. Remember Karnataka is one of most corrupt states in India today.

Nope. Politicians have taken people for granted. It is the attitude of some high end people living here in Bangalore and whatever the taxes the govt imposes, people will not mind paying that extra rupee. Till this attitude goes, we cannot expect anything from govt. Currently, the sector is under recession. Lets wait and see how people will react to these things.